Topic · 23 of 84 articles

Fundraising articles on fundraising psychology

Fundraising is an emotional gauntlet as much as a financial process. These pieces cover the psychology on both sides of the table: why rejection compounds, how investors think about risk, and how founders keep their heads through a hundred nos.

paulgraham.com·September 2013 ·35 min read

How to Raise Money

Paul Graham's definitive essay on early-stage fundraising, distilled from watching hundreds of YC companies raise. Covers why fundraising feels harder than it is, breadth-first search weighted by expected value, getting to yes/no fast, and the dangers of raising too much or letting fundraising drag on.

Fundraising StrategyInvestor MeetingsPre-SeedHow-To
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Above the Crowd·April 2016 ·30 min read

On the Road to Recap: Why the Unicorn Financing Market Just Became Dangerous… For All Involved

Gurley's landmark analysis of the late-stage unicorn financing market: how dirty term sheets, valuation obsession, and the incentives of every player (founders, VCs, LPs, bankers) set up companies for painful recaps. Written at the top of the 2015-16 cycle and vindicated repeatedly since.

Valuation & DilutionTerm SheetsSeries B+Contrarian View
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sahillavingia.com·February 2019 ·20 min read

Reflecting on My Failure to Build a Billion-Dollar Company

Lavingia raised $8M from top VCs at 19, failed to hit venture-scale growth, laid off 75% of his team after a failed Series B, and rebuilt Gumroad as a profitable, deliberately smaller company. A brutally honest account of what happens when you take venture money and land on the 'good but not billion-dollar' outcome.

Failed RaiseFundraising PsychologySeries AFirsthand Story
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paulgraham.com·August 2008 ·25 min read

A Fundraising Survival Guide

Graham on the emotional reality of raising: why fundraising is demoralizing by design, why investors herd and stall, and how to keep morale and the company alive through the process. Written mid-financial-crisis.

Fundraising PsychologyObjections & RejectionPre-SeedHow-To
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Medium·September 2013 ·15 min read

Postmortem of a Venture-backed Startup

The CEO of Sonar (millions of downloads, ~$2M raised) explains the company's death: chasing engagement over growth, a failed nine-month attempt to sell rather than cut costs, and how investor incentives shaped the endgame. Read by over a million people.

Failed RaiseFundraising PsychologySeedPostmortem
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Medium·June 2014 ·25 min read

My Startup Failed and This is What It Feels Like

Durkin founded 99dresses at 18, got into YC, lost her co-founders, and watched committed funding fall through at the worst moment, killing the company. An emotionally raw account of a collapsed round, visa pressure, and winding down.

Failed RaiseFundraising PsychologySeedPostmortem
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Female Founders (Medium)·June 2015 ·10 min read

Dear White Venture Capitalists: If you're reading this, it's (almost!) too late.

The viral 2015 essay, written while Hamilton was broke and pitching her fund, calling out venture's failure to fund underrepresented founders. It directly led to her first LP check and the founding of Backstage Capital.

Fundraising EthicsInvestor ResearchStage-AgnosticContrarian View
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blog.samaltman.com·2015 ·8 min read

Black Swan Seed Rounds

Altman observes that the best investments he's made were rounds nobody else wanted, and the hottest, most oversubscribed seed rounds mostly produced mediocre outcomes. Explains why consensus and quality are inversely correlated at seed.

Momentum & SignalingFundraising PsychologySeedContrarian View
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preethikasireddy.com·2018 ·15 min read

What I Wish I Knew About Fundraising as a First-Time Founder

A former a16z partner turned founder describes how different fundraising looks from the founder's chair: what she got wrong despite knowing the investor side, and the gap between VC theory and founder practice.

Fundraising StrategyInvestor MeetingsSeedFirsthand Story
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Bessemer Venture Partners ·8 min read

The Anti-Portfolio: Honoring the companies we missed

Bessemer's famous public list of the legendary companies it passed on, with self-deprecating explanations ('friend rented her garage to Google's founders; David asked how he could leave the house without going near it').

Objections & RejectionFundraising PsychologyStage-AgnosticFunny / Unusual
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paulgraham.com·August 2013 ·15 min read

How to Convince Investors

Graham on the substance of persuasion: convince yourself first, be a domain expert, and make the truth about your startup legible rather than performing confidence you don't have.

StorytellingPitch DeckPre-SeedHow-To
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paulgraham.com·December 2014 ·8 min read

The Fatal Pinch

Defines the default-dead trap: moderate growth, months of runway, and an assumption investors will save you. Explains why bridge rounds usually don't come and what to do instead (cut costs or grow into default-alive).

Raise ReadinessFailed RaiseBridge / ExtensionHow-To
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paulgraham.com·September 2012 ·12 min read

Black Swan Farming

Graham explains power-law returns from the investor side: the best ideas look like bad ideas, YC's returns come from a handful of companies, and even professionals can't reliably pick winners at the time of investment.

Fundraising PsychologyInvestor ResearchStage-AgnosticFirsthand Story
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elizabethyin.com·December 2018 ·20 min read

How I Raised My $11.5M VC Fund

Yin documents raising Hustle Fund I with funnel numbers: hundreds of LP conversations, conversion rates, and tactics. Fundraising for a fund mirrors a startup raise, and she shows the whole pipeline including the rejections.

Fundraising StrategyCold OutreachStage-AgnosticFirsthand Story
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blog.samaltman.com·2015 ·6 min read

The Post YC Slump

Altman on the pattern where startups treat closing a round as the achievement, coast afterward, and die: fundraising success is a lagging indicator that buys time, nothing more.

Fundraising PsychologyRaise ReadinessSeedContrarian View
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First Round Review·2018 ·15 min read

Here's the Advice I Give All of Our First Time Founders

A First Round partner's standing advice to new portfolio founders, including how to work with investors after the round closes and how to set up the next raise from day one of this one.

Raise ReadinessFundraising StrategySeedHow-To
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Substack·2023 ·10 min read

Fundraising 101: I'm currently in NY! *Buys Flight to NY*

A young founder's candid, funny account of the performative side of fundraising: manufacturing 'I happen to be in town' moments, reading investor signals, and the theater everyone pretends isn't happening.

Investor MeetingsMomentum & SignalingPre-SeedFirsthand Story
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Marker (Medium)·2019 ·12 min read

Reflecting on My Failure to Build a Billion-Dollar Company, Part 2

An analytical companion to Lavingia's essay: Baschez unpacks the structural reasons venture-backed Gumroad 'failed' at billion-dollar scale while succeeding as a business, examining how funding choices define what counts as success.

Failed RaiseValuation & DilutionSeries ATeardown
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hunterwalk.com·November 2020 ·6 min read

Is It Fair To Tell Founders 'Just Execute And You'll Be Fine' When We Know It's Not A Level Playing Field?

A sitting VC interrogates his own industry's meritocracy narrative: standard fundraising advice assumes network access and pattern-matching benefits that underrepresented founders don't get, and he discusses what honest advice looks like instead.

Fundraising EthicsFundraising PsychologyStage-AgnosticContrarian View
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The Verge·November 2013 ·20 min read

Out of the picture: why the world's best photo startup is going out of business (Everpix)

The definitive reported account of Everpix's death: a beloved product with paying users that ran out of runway mid-raise; the founders later open-sourced their pitch decks, metrics, and investor pipeline. A masterclass in how good products die from failed fundraises.

Failed RaiseFundraising PsychologySeedPostmortem
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Medium·June 2014 ·10 min read

Mattermark Has Raised $2M in Our Second Seed Round

Morrill explains publicly why Mattermark took a $2M second seed instead of the Series A she'd been pitching: two years of nonstop fundraising, a bridge from a customer-investor, and the honest math of raising below your hopes.

Bridge / ExtensionFundraising PsychologySeedFirsthand Story
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Baremetrics Founder's Journey (Medium)·2017 ·12 min read

Getting Out of the Startup Rat Race

After raising a $500K seed and then nearly running out of money, Pigford describes negotiating with his investors to reset expectations and step off the venture growth track, with the actual numbers Baremetrics published all along.

Alternative CapitalValuation & DilutionSeedFirsthand Story
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SaaStr·2024 ·6 min read

Dear SaaStr: What Are the Top Mistakes You See New Founders Make?

Lemkin's blunt list of first-founder mistakes, the fundraising ones foremost: assuming the next round is guaranteed, burning to a plan that requires it, and wasting months pitching the wrong investors.

Raise ReadinessFundraising StrategySeedHow-To
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